What will happen to the Pound against the Canadian Dollar this month? (Tom Holian)

Brexit and Coronavirus Weigh on GBP as Oil Price Collapse Causes CAD Value to Fall

The Pound has had a strong end to the week against the Canadian Dollar as oil prices have started to fall which has had a negative impact on the Canadian Dollar.

Crude oil has fallen by over 5% and this was the biggest single daily fall for over 12 months and was caused by the US claiming that it currently has a rather large surplus of oil.

The price of a barrel of oil has now fallen to below USD$50 for the first time since December and as oil is such a big exporter and revenue generator for the Canadian economy any negative news often causes weakness for the Canadian Dollar vs the Pound.

We end the week with this afternoon’s Canadian employment figures. The expectation is for 6.8% which is a fairly healthy figure so any change is likely to move GBPCAD exchange rates later on today.

The over riding factor for the strength of Sterling however is what is likely to happen when Article 50 is triggered. The latest is that the House of Lords have put in a challenge to the recent Brexit bill and this has caused a loss of confidence for the Pound in the last few weeks.

With Article 50 due to be triggered by the end of this month we could see further negative movements for Sterling against all major currencies including the Canadian Dollar.

Therefore, the gains we have seen for the Pound against the Canadian Dollar owing to the fall in oil prices is in my opinion just a short term negative move.

If you need to buy Canadian Dollars in the short term it may be worth organising this prior to the triggering of Article 50.

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

If you would like further information or simply a free quote when buying or selling Canadian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian [email protected]